William Simpson
The world’s best-selling pizza chain thinks raising lots of money for charity is as easy as pie.
Domino’s recently pledged $174 million over the next 10 years to benefit St. Jude Children’s Research Hospital, hoping the funds will come from its long-running fundraising campaign that invites customers to donate the difference between their purchase total and the next highest dollar value. The pizza chain has raised more than $126 million this way over the past two decades for ALSAC, the hospital’s Tennessee-based fundraising organization.
Domino’s is the latest and greatest example of a successful “charity fund.” The fundraising tool raised 24% more money in 2022 than in 2020 among top-grossing programs, for a total of $749 million, according to the professional association Engage for Good.
This staying power leaves franchises hopeful that consumers will continue to pay back despite shifts toward online shopping, economic headwinds and fears that more frequent requests will cause fatigue. Meanwhile, some retailers are pursuing partnerships formed for the first time after the racial reckoning of 2020 pushed corporate citizenship to the forefront of business practices.
Studies suggest that asking customers to round is generally more effective than asking for a fixed amount – even when the totals are the same. That’s because framing lessens the pain of parting with money, according to an article Published in the Journal of Consumer Psychology.
“It’s less painful,” said Katie Kelting, a marketing professor at Saint Louis University who led the research team.
The timing of the appeal introduces several other psychologically potent factors, according to Ike Silver, a marketing professor at Northwestern University. Either way, shoppers tend to perceive their purchases in whole numbers: a $24.75 bill registers as $25, for example.
Plus, Silver said, it makes the act of giving “a little more stupid.” Shoppers rushing to get through the checkout line don’t have much time to consider their reasons against donating.
There’s no time to think
“They capitalize on purchasing inertia where you just spend your money and don’t think much about it,” Silver said.
Proponents of the strategy credit calls for daily involvement from potential donors in an accessible form of giving with low barriers to entry. The practice is so common that cumulative gifts from buyers have even become a key source of financing for some problem areas.
PetSmart Charities, which reports that more than 80% of its cash donations come through PIN at checkout, is considered the largest donor to animal welfare causes. The pet superstore, which has run its ongoing PIN donation program for 20 years, asks customers to donate a fixed dollar amount starting at $2.
The money supports causes directly related to pets, such as increasing access to veterinary care and pet evacuation services during natural disasters. That authentic connection is one of the reasons PetSmart Charities President Aimee Gilbreath believes her average donation is just under $3 — which is projected to total $40 million by the end of this year.
Without the closely aligned missions, Gilbreath expects it would be a little harder to get customers to donate.
“It’s a lot easier for people to say yes when they say, ‘I’m here shopping at PetSmart. I love pets. If I donate to PetSmart Charities, I’m going to support pets who need a family, I’m going to support animals. pet in other ways,'” she said.
In fact, Kelting said the correspondence between the charity and the seller is “huge.” Customers may perceive point-of-sale requests as a violation of their social contract with a company, according to researchersbut partnerships between like-minded organizations are viewed in a more positive light.
REI Co-op, a specialty seller of outdoor clothing and gear, launched its member-supported public charity in 2021 to help make outdoor spaces more inclusive. The goal was to put more resources into surrounding communities emerging from COVID-19 shutdowns.
At its 185 U.S. locations, salespeople often initiate personal conversations about buyers’ upcoming excursions. These unique connections with their clientele of nature enthusiasts open the door to asking for donations at checkout, according to Squire Simpson, board member of the REI Cooperative Action Fund.
REI cashiers should end the conversation with an open-ended request that allows customers to decide whether they want to round up or donate an amount of their choosing. About $2.2 million of 1.3 million individual donations were raised in stores last year, according to Simpson, a 2.5% increase from 2022.
Recipients include a Pennsylvania group that promotes cycling among black women and an Alaska nonprofit that provides therapeutic recreation for people with disabilities.
“This is not a broad corporate recipient,” Simpson said.
Still, some observers are concerned that even the best of intentions can’t stop the tap from turning off, as like-minded programs pop up in checkout lines across the country. Silver, a professor at Northwestern University, wonders whether the effectiveness of “checkout charity” will wane with its popularity.
“If it really is something that comes up every time you swipe your card, one risk is that people will start to notice that and feel a little more manipulated,” he said.
Misinformation doesn’t help either. Contrary to popular Internet memes, tax policy experts say stores can’t void customer donations at points of sale because they don’t count as company income.
Domino’s leaders remain confident in their well-honed strategy. With the iconic Saint Jude child printed on Domino’s pizza boxes, established partners are already among the most recognized when it comes to point-of-sale donations.
Above the checkout widget is a summary request with the child’s image. During its 11-week holiday campaign, customers are greeted by a “click and go” pop-up requesting $2, $5, $10 or $20. The request details St. Jude and features a general donation tracker.
Domino’s raised $8.9 million last year through a roundup. Its leadership believes this number will increase as part of a new five-year strategy to increase its customer base.
Described by CEO Russell Weiner as “an audacious goal” that isn’t necessarily a “sunk,” the high-value charitable commitment adds another motivator to meet your nonprofit’s latest benchmarks.
ALSAC CEO Rick Shadyac said the extra funding from Domino will support St. Jude’s efforts in 80 countries to help triple the survival rate for children with the six most common forms of childhood cancer. This includes the launch this summer of a program that will ultimately provide free cancer medicines to 30% of the 400,000 children worldwide with the disease.
“If we generate more sales and more stores, what does that mean? That means we have more customers,” Weiner told the Associated Press. “The better we do there, the more people we’ll have to raise money for St. Jude.”
___
Associated Press coverage of philanthropy and nonprofits is supported through AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. AP is solely responsible for this content. For all of AP’s philanthropic coverage, visit
